Health insurance questions that could save you money
If you're looking for ways to reduce your private health insurance cost, reviewing your policy regularly is a great first step. By ensuring your cover aligns with your needs and taking advantage of available benefits, you can save hundreds or even thousands each year. Private health insurance doesn't have to break the bank. In fact, by making a few simple adjustments, you can get the best value for your health insurance without sacrificing coverage.
Here are six essential questions that could help you save money on your policy and get the most out of your health cover.
1. Is your current health cover still relevant to your needs?
Affordable health care insurance means reviewing whether you’re still paying for services you no longer use. For example, if you're no longer playing sports, you might not need extensive physio cover. Or, if your family is complete, you can remove pregnancy cover to lower the cost of private health insurance.
2. Does your health cover offer the right level of cover?
Whether you're interested in Extras cover, Hospital-only policies, or a combined Hospital and Extras plan, the best private health insurance policy is one that gives you peace of mind knowing you’re covered for the services you’re most likely to use.
At nib, we've created Extras covers so you can access healthcare services suited to your lifestyle. For example if wellbeing is important to you, you can chose cover which includes natural therapies like remedial massage. And, if your needs change, it's easy to select an Extras policy to suit you!
We also understand that Extras aren't for everyone, so you have the option to choose hospital-only cover if want to avoid the Medicare Levy Surcharge (MLS), an Australian Government initiative that is an additional amount of tax applied to singles earning over $97,000 or couples earning over $194,000 who don't have an appropriate level of private hospital cover1.
When you're comparing health cover options, don't just look at price, look at what the policy includes and think about whether it suits your lifestyle. Make sure you review the policy waiting periods, excess and annual limits.
Not sure what you need? No worries. Our friendly team is available to speak with you to ensure you're getting health cover that suits your needs and the best value for your money.
3. Are you taking advantage of discounts and rewards?
At nib, there's more to your health insurance than just coverage and cost. nib Rewards is available to members, offering discounts for over 100 retailers, events and experiences. By using Rewards, you can save money on the everyday and special occasions, and add significant value to your policy2.
Are there health and wellbeing programs or tools you could be accessing for free? Or could you be saving money on your premium by setting up a direct debit? By asking these questions, you can ensure you're getting the most bang for your buck with your health insurance plan.
4. What is your health insurance excess?
When looking at your private health insurance policy, it's vital to check what level of excess you've got. For example, if you want to save money on your monthly premium, consider choosing a higher excess option. Australian residents can select an excess of up to $750 for singles and $1,500 for couples and families. To find out more about your excess options, head to your member account.
Related: Reduce the cost of your health insurance premium by changing your excess
5. What is the percentage you can claim back on your health cover?
Some health funds offer different percentages you can claim back across their extras products, while some offer set benefits. At nib, we've kept it simple with our latest range; depending on your cover you can claim from 50% to 75% of the cost up to the annual limit. It's important to think about this when you’re considering value for money – a cheap premium with a low claim back percentage may not be ideal.
You can also save money by visiting an nib-recognised provider from the nib First Choice network. This gives you access to agreed rates on treatments, which means the price you pay for these services is already set and won’t surprise you with extra costs later.
You can also further reduce your out of pocket expenses with No Gap offers in selected dental, optical and physio. Find out more about nib’s First Choice network and how it can reduce your health insurance costs.
6. Are you making the most of the private health insurance rebate?
Did you know the Australian Government offers a rebate on private health insurance? It's a way to help reduce the cost of your premiums. If you’re eligible for Medicare, and depending on your income, you could get a percentage of your premiums back, which means you’re paying less each month. It’s a great way to save on your health cover while still getting all the benefits!
Log in to your member account or the nib App to ensure you’re getting the right private health insurance government rebate or follow this handy guide to learn how.
7. How can I get the best value for money health insurance?
Health insurance shouldn't be set and forget. To ensure you're paying the best private health insurance premiums – and getting the right cover when you need it – review your policy regularly to ensure you're getting the best deal.
If you're not sure whether your current health insurance is the most cost-effective, contact us today. Our team is ready to help you compare health cover and find a plan that best suits your budget and needs.
The information shared in this article is general and not meant to guide specific financial choices. Always consult with a professional who understands your personal situation before making any financial decisions.
1Medicare Levy Surcharge (MLS) is a government initiative and may apply if you are a single and earn over $97,000, or a couple and earn over $194,000 in FY24/25, and don't have private hospital cover. The surcharge is payable for every day you don't have hospital cover within the financial year. The ATO uses a special definition of income (called income for MLS purposes) to determine whether you are liable to pay the MLS, and the rate of MLS you will have to pay. This income is different to your taxable income.
2T&Cs apply. Some offers may vary or be available for a limited time. Actual savings will depend on your individual circumstances, including the amount you spend. Discounts may vary by category. Payments for eGift cards made by debit/credit card incur a 1% fee. For more information on member rewards, visit nib.com.au/member-benefits/rewards.